Marywood University, Pa., Downgraded to BBB-Minus by S&P

Standard & Poor's Ratings Services said it lowered its long-term rating to BBB-minus from BBB on Pennsylvania Higher Educational Facilities Authority's series 2005B and 2005C revenue bonds, issued for Marywood University, and on Abington Township Municipal Authority, Pa.'s series 2007 revenue bonds, issued for the university.

At the same time, the agency removed the ratings from CreditWatch. The outlook is stable.

"The downgrade reflects the university's weakened financial position and increased reputational risk associated with the loss and subsequent reinstatement of accreditation for its nursing program," said Standard & Poor's credit analyst Carolyn McLean. "In addition, the university's plan to issue $20 million of private placement debt within the next year would further pressure financial resources to the point that they are more in line with the lower end of the BBB category."

Standard & Poor's placed the ratings on CreditWatch with negative implications on April 30, 2013, after the university's nursing program lost its accreditation. The problem was resolved through an appeal process and accreditation was reinstated through the date of revocation.

Marywood University was founded in 1915 by the Sisters, Servants of the Immaculate Heart of Mary as a seminary for girls in Scranton. It has been coeducational since 1968 and gained university status in 1997.

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